[ET Net News Agency, 13 March 2020] Goldman Sachs cut its target price for Hutchison
Telecom HK (00215) to HK$1.5 from HK$1.58 and maintained its "neutral" rating in light of
macro uncertainties and continued mobile ARPU pressure.
The research house cited HutchTel's management indicating that roaming contributes
around 20% of total mobile service revenue, among which two-thirds come from outbound
traffic. Therefore, assuming inbound revenue to stay flat HoH and outbound revenue to
decrease by 70% YoY, Goldman lowered its 2020 consumer-related mobile service revenue by
4.9%.
Enterprise contributes around 5% of total service revenue. For this segment, Goldman
believes the majority comes from IoT related revenue and therefore might experience
limited impact from COVID-19.
Reflecting on the above factors, Goldman lowered its 2020 revenue/EBITDA/EPS by
7.8%/5.0%/12.5%. (KL)